Diesel Price In Haryana Today

Diesel Price In Haryana

Haryana, the northern state in India is one of the wealthiest states in the country. Agriculture, manufacturing sector, service industry and retail sector are the major drivers of state’s economy.

Chandigarh, a union territory and city, is the capital of Haryana. Major cities in the state include Faridabad, Gurgaon, Panchkula and Dharuhera.

Faridabad, which is a part of the National Capital Region (NCR), is the most populous city in the state, while Gurgaon (officially Gurugram) is the financial and IT hub of NCR, with most Fortune 500 companies. Panchkula and Dharuhera are the places where automobile industries are located in the state.

Haryana is also a major contributor to Indian economy with agriculture and manufacturing sector being the drivers of growth. Though the state is primarily an agricultural state, with the swift development of world-class infrastructure, it attracted both public and private investments and is one of the most developed states in India.

With agriculture and industries forming major part of Haryana’s economy, diesel, an essential commodity for both the sectors.

Compared to petrol, diesel consumption in Haryana is likely to be high due to the presence of many automobile and IT companies. Agriculture sector also utilises diesel to run various equipment and agriculture vehicles.

The public transport in the state of Haryana is composed of Metro and road transport. State-owned Haryana Roadways is the main service provider for passenger transport in the state. It runs a fleet of about 4250 buses including both diesel and CNG run buses. Besides, there are private vehicles, taxis, autos, which form part of transportation in the state.

In a move to curb pollution, the Haryana government in 2016, banned the use of 10 year old diesel cars and 15 year old petrol cars. The ban is applicable in the cities under the jurisdiction of NCR including Gurgaon, Faridabad, Sonepat and Jhajjar.

Quarterly Diesel Price Trend in Haryana between July and September 2018

Diesel Price Trend in Haryana in July 2018

• Diesel prices in Haryana and other states in the country are revised on a daily basis under the dynamic fuel pricing mechanism.
• State-owned oil companies fix the retail price of diesel on the basis of the global crude oil price and the rupee-dollar exchange rate.
• Based on the daily revision, the diesel price in Chandigarh, the capital of Haryana, on the 1st of July stood at Rs.65.43 per litre - the lowest diesel price recorded during the course of July.
• Prices remained the same until the 5th of the month before it was hiked by 8 paise to be sold at Rs.65.55 per litre on the 6th.
• Diesel prices during the first week continued to increase to touch the highest price of Rs.66.63 per litre on the 14th due to the incline in crude oil prices in the global market.
• By the last week, diesel prices declined; however, it was not lower than the opening price of the month.
• On the 31st of July, a litre of diesel in Haryana was sold at Rs.65.96, up by 53 paise per litre.
• The diesel price trend in Haryana in July was upward with an incline of 0.81% attributed to the increase in oil prices.

Diesel Price Trend in Haryana in August 2018

• In accordance with the daily revision, the diesel price in Haryana was decreased by 4 paise to be sold at Rs.65.92 per litre. This was also the lowest price registered during the month.
• Due to geopolitical tensions between the U.S. and China, the crude oil prices continued to rise in the month of August.
• During the course of the first and second week, diesel prices in Haryana, as well as other states, continued to incline attributed to the increase in oil prices.
• With a shortage in supply of crude oil in the international market, diesel prices continued to be hiked by oil companies in sync with the rise in oil rates.
• The closing price of diesel in August stood at Rs.68.31 per litre which was also the highest price recorded in August in Haryana.
• Overall, the diesel price rose by 3.16%, primarily influenced by the significant incline in the global crude oil price.

Diesel Price Trend in Harayan in September 2018

• Diesel was available at Rs.68.47 per litre in Haryana on the 1st of September, an increase of 16 paise over the previous day. This is the lowest diesel price recorded in September.
• There was no let up in the increase of diesel prices across the country as oil prices moved upwards.
• Along with the increase in oil prices, the exchange rate of rupee over the U.S. dollar dropped to its lowest to touch Rs.72.
• Crude oil price rose to touch a four-year high of $80 per barrel prompting oil companies to increase fuel prices across the country.
• The increase in oil prices was primarily due to the geopolitical tensions between the U.S. and Iran which led the shortage in oil supply.
• By the end of the month, diesel prices across the country started to touch record levels breaching previous highs.
• On the 30th, the diesel price in Haryana stood at Rs.72.72 per litre - the highest rate recorded in September.
• The diesel price trend in Haryana in September was upward with prices increasing by 6.21% prompted by the significant incline in oil prices coupled with the depreciation in the Indian currency over the dollar.

Quarterly Diesel Price Trend in Haryana Between April and June 2018

Diesel Price Trend in Haryana in April 2018

• The diesel price in Chandigarh, the capital of Haryana on the 1st of the month stood at Rs.62.69 per litre. This was also the lowest diesel price of the month.
• During the first week, diesel prices in Haryana increased marginally in tandem with the rise in the global crude oil price.
• Diesel prices are revised on a daily basis and are updated by State-run oil companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum. Oil companies include the preceding day’s crude oil rate and the currency exchange rate to arrive at the Retail Selling Price (RSP) of diesel in a city.
• Diesel prices vary from State to State due to the variations in the local sales tax or Value Added Tax (VAT) rate. Diesel attracts both the excise duty levied by the Centre and the VAT imposed by the respective State.
• Diesel prices continued to incline over the second and third week and by the end of the month, the price of diesel had risen by Rs.1.32 per litre to stand at Rs.64.01 per litre on the last day of April 2018.
• The diesel price trend in Haryana during April reflected an upward trend of 2.11% largely due to the increase in oil prices in the global market.

Diesel Price Trend in Haryana in May 2018

• On the 1st of May 2018, the diesel price in Haryana stood at Rs.64.01 per litre similar to the previous day as fuel companies kept diesel prices unchanged and this continued till the 11th of the month.
• The lowest diesel price in Haryana in May 2018 stood at Rs.64.01 a litre recorded from 1st to 11th. With oil prices in the international market remaining steady, oil companies did not revise the diesel price.
• However, post the 11th oil companies began revising diesel prices in tandem with the global crude or unrefined oil rate.
• Diesel prices in Haryana in the last threw witnessed a sharp incline as the crude oil price touched $80 per barrel compared to nearly $60 recorded during the first week of the year.
• Diesel prices continued to soar and touched an all-time high of Rs.67.34 per litre on the 29th of the month. The sharp increase in diesel prices is attributed to the rise in crude oil rates as well as the currency exchange rate of the US dollar over rupee.
• The diesel price trend in May 2018 in Haryana witnessed a sharp upward trend of 5.11% largely due to the significant rise in the crude oil rate.

Diesel Price Trend in Haryana in June 2018

• The rise in crude oil and the US dollar value is related to the geopolitical tensions over a shortage in supply as the US administration pulled out the Iranian nuclear deal which caused concerns that oil production might decline.
• On the 1st of the month, diesel was supplied at Rs.67.24 per litre, a slight decline of 4 paise per litre recorded in Haryana.
• With the global crude oil prices touching new highs, the Organisation of Petroleum Exporting Countries (OPEC) and its ally Russia met on the 22nd to address concerns of high fuel prices across the globe.
• It was agreed that the OPEC and Russia will increase oil production to ease the crude oil price in the international market.
• During the third and fourth week, diesel prices declined considerably as the global crude oil price rallied downwards in the backdrop of lower crude oil rates.
• Diesel prices continued to fall significantly with the diesel being supplied at Rs.65.43 per litre on the last day of the month, a decline by Rs.1.81 per litre compared to the 1st of the month.
• Overall, the diesel price trend in Haryana in June 2018 reflected a downward trend of 2.70% for a litre of diesel.

Diesel Price in Haryana Compared to Other States

In 2015, the government of Haryana along with other states including Punjab, New Delhi, Haryana, Himachal Pradesh and Chandigarh started implementing uniform tax structure on all goods and services including petroleum products.

The move, which was introduced to eliminate tax evasion and curb smuggling of goods from one state to another, ensures that VAT on all the goods sold in the aforementioned states is the same. However, with the introduction of GST, the uniform tax structure is no more applicable on all other goods and services except for petroleum products.

The petroleum products such as petrol and diesel in all the above mentioned five states still come under uniform tax structure. With the tax regime in place, diesel price in the five states will be almost same with a slight variation.

Comparing with the neighbouring Indian states, Haryana currently offers a litre of diesel for Rs. 59.64 as on 2 October 2017. The highest price is observed in the Telugu state of Andhra Pradesh at Rs. 66.11/Lt, while the lowest is being offered by the state of Mizoram at Rs. 56.63 per litre.

Also Check: Diesel Price in Chandigarh

How often Diesel Prices are Revised in Haryana?

In the state of Haryana, just like in any other India state, diesel prices are updated/revised on a daily basis, unlike the earlier fortnightly revision, which came to an end on 15 June 2017.

The daily revision of prices, also known as dynamic fuel pricing, came in to effect on 16 June 2017 to bring transparency in the fuel pricing in India.

With the dynamic fuel pricing in place, even the slightest change in the international crude oil prices will be reflected in the daily updated diesel price in India, thus benefits the end customer who would be enjoying even the slightest benefit in the fuel price.

In Haryana, diesel prices will be updated every day by 6 a.m. at every petrol pump. The same will be displayed high at the fuel stations. Customers can also view the daily revised diesel prices in the websites of the oil marketing companies including Indian Oil, Hindustan Petroleum, Bharat Petroleum and other private players such as Shell and Essar.

The companies also make the information about the updated diesel prices available on their respective mobile apps.

Trend in Diesel Price in Haryana between January and March 2018

Trend in Diesel Price in Haryana in January 2018

• The fuel was offered at Rs.58.01 a litre as of 1st January by Indian Oil Company in Haryana. Hindustan Petroleum and Bharat Petroleum also retained the same price.
• On a daily basis, these three Oil Marketing Companies (OMCs) revise the fuel rate based on the variations in the Forex and crude oil markets.
• In January, the RSP of diesel in Haryana includes the unrefined oil cost, which was Rs.26 per litre; the expenses incurred by the OMCs, which were Rs.10.30 a litre; and the excise duty, which was Rs.15.33 a litre.
• All the cost elements were retained unaffected except crude oil costs, which were hiked by oil exporting countries in this month.
• With continually growing unrefined oil costs and a decreasing dollar, the OMCs have stretched the diesel prices in Haryana to their many-year highs.
• Across all parts of the state, the fuel market breached the highest price at Rs.62.13 a litre on 31st. The lowest price worked out to be Rs.58.01 a litre on 1st for the month.
• In December, crude oil was priced at $62.29 per barrel and the price accelerated to $67.06 per barrel in January. The USD/INR was also down and hence, the diesel rate in the state was up 7.10%.

Trend in Diesel Price in Haryana in February 2018

• Finance Minister advised revising the existing tax framework on 1st. He introduced an additional tax of Rs.7 a litre. Despite a noticeable change, fuel prices were not affected.
• On 1st, 2nd, 3rd and 4th, diesel was retailed at Rs.62.22 a litre in Haryana. Because of the unstable crude oil and Forex markets, the movement of fuel price was not consistent.
• For the month, the lowest price fell on 25th and the highest price on 6th. It is uncommon to observe.
• Unrefined oil was valued at $67.28 per barrel on 2nd, $64.62 per barrel on 7th, $63.63 per barrel on 16th, $62.37 per barrel on 21st , and $63.99 per barrel on 28th.
• The USD/INR exchange rate closed at Rs.64.29 on 7th, Rs.64.11 on 14th, Rs.64.82 on 21st, and Rs.65.22 on 28th. As a result, fuel prices were down 3.06% in February 2018.

Trend in Diesel Rate in Haryana in March 2018

• Like the previous two months, the domestic influencers were not modified in this month. Globally, except the variations in the exchange rate and the crude oil expenses, other elements such as refinery activities and the political trends in crude oil marketing nations were not changed.
• Production cuts and demand severely impact the crude oil price internationally. As far as this quarter is concerned, the extraction of unrefined oil was constant. The commodity was supplied uninterruptedly.
• Based on the demand pattern for the commodity, once again, the fuel commenced gaining its value until the end of March. But, the impact of the exchange ratio was nominal.
• Though we can observe an upward trend in March, the growth rate has been lower compared to January. From 7.10%, the growth rate slid to 3.39% in Haryana.
• Between January 2018 and March 2018, Bharat Petroleum, Hindustan Petroleum and Indian Oil have declared a growth rate of 7.74%, which was above the expected level.
• The highest rate for the month of March and the whole quarter was reported to be Rs.62.52 a litre. On the contrary, the lowest rate for the month was Rs.60.47 a litre.

Factors Affecting Diesel Rate in Haryana

Diesel pricing is composed of various elements some of which are fluctuating in nature, resulting in varying diesel prices every day.

The primary component that decides diesel price in Haryana or elsewhere in the country, is the international crude oil price. India being one of the biggest importers of crude oil, purchases crude oil from other countries. The price at which the oil companies buy a barrel of oil from international companies forms the major component of diesel pricing. The higher the price of a barrel of oil, which is equivalent to 159 litres of oil, in international market, the higher the retail selling price of diesel in India.

As the crude oil is often purchased in US dollars, the Indian rupee to US dollar exchange rate becomes the next important factor that influences the diesel price. If the value of rupee falls against the dollar, companies have to shell out more money to buy the oil, making diesel dearer.

Other important elements that form more than 50% of the selling price of diesel are the central and state taxes levied on diesel. The governments at both the state and centre level are often criticised for levying higher taxes on the commodities that play a crucial role in the day to day life of every citizen, despite which they continue to charge the same, as taxes are their main revenue generators.

Cost of freight and transportation, profit margins of dealers and oil companies, other charges such as pollution cess and surcharge on taxes are the other elements involved in diesel pricing. They do make a marginal variation in the price of diesel.

State Taxes and Diesel Price in Haryana

As discussed earlier, state and central government taxes form a major chunk in the diesel price. While the central government levies excise duty on diesel, the state government charges value added tax (VAT).

While the excise duty on diesel remains same across all Indian states, VAT is one thing that changes from state to state as it is decided by the respective state government.

Currently, the Haryana government charges 16.4% VAT per litre of diesel. After adding cess and surcharge on VAT, the effective tax rate on diesel comes to 17.22%, which is 13.6 points less than the highest tax levied by the Andhra Pradesh government and 5.22 points more than the lowest VAT levied by the Mizoram government.

The last hike on VAT levied on diesel in Haryana was made in July 2015. It was increased from 12.07% to the current 17.22% per litre.

Effect of GST on Diesel Price in Haryana

GST or the goods and services tax, which was introduced in India in July 2017, replaces multiple taxes levied by state and central government at various levels in India. Currently, GST is being levied in four different tax brackets including 0%, 5%, 12%, 18% and 28%.

While the implementation of GST impacted the prices of most of the commodities in India both positively and negatively, its effect on prices of diesel and other petroleum products, for now is, zero.

This is because of the exemption that was given for diesel and other petroleum products, which are currently kept outside the purview of GST. Therefore, diesel is still taxed as per the old tax regime, which includes both central and state taxes.

If diesel is brought under GST, assuming that it is taxed the highest, which is 28%, its price will be still lesser than the current price as the combined state and central taxes on diesel in Haryana are more than 28%. Hence, bringing diesel under GST net would likely to decrease its price in Haryana.

Diesel Rate versus Petrol Rate in Haryana

Compared to petrol, diesel is available at a lesser price in Haryana, similar to its neighbouring states. As of 3 October 2017, there is a Rs. 11.43 price variation between petrol and diesel in Haryana, with petrol priced at Rs. 70.82/Lt and diesel at Rs. 59.37/Lt.

The price variation between petrol and diesel is mainly due to difference in taxes being levied on the two commodities. As diesel is widely used fuel across various sectors in India including transport, manufacturing, agriculture, construction among others, the taxes on the commodity are lesser compared to its counterpart.

While the central excise duty on a litre of petrol is Rs. 19.48, it is Rs. 15.33/Lt on diesel. Similarly, VAT levied by Haryana government on petrol is 26.25%, while it is 17.22% on diesel.

Other factors that bring marginal variation in the prices of petrol and diesel in Haryana are the international crude oil price, dealer’s profit margin and other charges such as surcharge and cess.

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